Yeah... N95 has 2 CPUs at about 330 MHz, quite powerful 3D acceleration and an FPU yet it hardly manages to achieve the speeds and graphics of a N64 or Playstation.
Well, there's actually a reason: they are ARM CPUs. And they're downclocked, too, otherwise the N95 would be a nuclear warhead in your palm.
On a side note, the CPUs on the DSi are downclocked as well. There's a trend with taking faster processors and downclocking them so operating voltage can be reduced, thus improving battery life.
The PSP is also downclocked from 333MHz to 222MHz and even then, it's only lasting about 4 hours on average. Battery life on N95 is very good for that kind of performance in my opinions.
They've come up with a single ARM CPU running at 600MHz by default, though... so I'm guessing we'll see some improvements soon.
But for the time being, I'm really content with having Solid Snake in my palm even if his face looks worse than in MGS1.

But actually, it doesn't. Yay!